The Hindu Business Line : DSL Soft buy-out: HCL Tech set to begin valuation

KEEPING in line with its plans to buy out Deutsche Bank's 49 per cent stake in a joint venture company DSL Software, HCL Technologies has said it would appoint a merchant banker for the valuation exercise next month.

"We have not started the process of valuation yet. We plan to appoint a merchant banker for this purpose, within a month," Mr S.L. Narayanan, Corporate Vice-President (Finance), HCL Technologies, said here.

As per the agreement announced in September 2001, HCL would acquire the remaining 49 per cent stake in the joint venture at the end of three-year period, through issuance of HCL Technologies equity shares to Deutsche Bank.

"The basis and methodology for the process was defined in the shareholders agreement we had signed at the time of formation of the joint venture. We expect to complete the entire transaction by the end of the calendar year," Mr Narayanan added.

At the time of announcing the partnership, HCL Technologies had stated that the joint venture would provide it with a strong platform to strengthen its global presence in the financial services segment.

As per the original terms of the agreement, DSL Software would have a right of first refusal for seven years on business that is to be sourced by Deutsche Bank from India.

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